PR23 2Bthis is a practice problem with two parts 1. a.Direct Materials VariancePrice variance:Actual priceStandard priceVarianceActual quantityDirect materials price variance (favorable) unfavorableQuantity variance:Actual quantity used (lbs.)Standard quantity used (lbs.)Variance (lbs.)Standard priceDirect materials quantity variance (favorable) unfavorableTotal direct materials cost variance (favorable) unfavorableTotal direct materials cost variance:Actual costStandard costTotal direct materials cost variance (favorable) unfavorableSupporting calculations:Standard quantity used of filler:Coats producedStandard amount per coat (lbs.)TotalStandard quantity used of liner:Coats producedStandard amount per coat (yds.)TotalFillerWomensLinerMen'sTotalTotalb.Direct Labor VarianceRate variance:Actual rateStandard rateVarianceActual timeDirect labor rate variance (favorable) unfavorableTime varianceActual tiimeStandard timeVarianceStandard rateDirect labor time variarce (favorable) unfavcrableTotal direct labor cost variance (favorable) unfavorableTotal direct labor cost variance:Actual costStandard costTotal direct labor cost variance (favorable) unfavorableWomen'sCoatsMen'sCoatsTotal I'm Really Cold Coat Company makes women's and men's coats. Bothproducts require filler and lining material. The following planninginformation has been made available:FillerLinerStandard labor timePlanned productionStandard labor rateActual productionFillerLinerStandard Amount per UnitWomen's coatsMen's coatsWomen's Coats4.0 lb.7.0 yds.0.40 hr.Women's Coats5,000 units$14.00 per hr.Men's Coats5.2 lb.9.4 yds.Women's Coats4,400Actual Price per Unit$1.90 per lb.8.20 per yd.Actual Labor RateI'm Really Cold Coat Company does not expect there to be any beginning or endinginventories of filler and lining material. At the end of the budget year, I'm Really ColdCoat Company experienced the following actual results:$14.10 per hr.13.30 per hr.0.50 hr.®ExcelStandard Price per Unit$2.00 per lb.8.00 per yd.Men's Coats6,200 units$13.00 per hr.Men's Coats5,800Actual Quantity Purchased and Used48,00085,100Actual Labor Hours Used1,8252,800

Name: PR23 2Bthis is a practice problem with two parts 1. a.Direct Materials
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Description: PR23 2Bthis is a practice problem with two parts 1. a.Direct Materials VariancePrice variance:Actual priceStandard priceVarianceActual quantityDirect materials price variance (favorable) unfavorableQuantity variance:Actual quantity used (lbs.)Standar

Variance refers to the difference between actual results and the budget or standard. this helps in…

Business

Accounting

m Really Cold Coat Company does not expect there to be any beginning ventories of filler and lining material. At the end of the budget year, I'm oat Company experienced the following actual results: Actual production Filler Liner Women's contr Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate $1410 por br Men's Coats 5,800 Actual Quantity Purchased and 48,000 85,100 Actual Labor Hours Used 1875

m Really Cold Coat Company does not expect there to be any beginning ventories of filler and lining material. At the end of the budget year, I'm oat Company experienced the following actual results: Actual production Filler Liner Women's contr Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate $1410 por br Men's Coats 5,800 Actual Quantity Purchased and 48,000 85,100 Actual Labor Hours Used 1875

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....

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Similar questions

What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
Use the information provided to answer the questions. All material purchased was used in production. A. What is the standard price paid for materials? B. What is the direct materials quantity variance? C. What is the total direct materials cost variance? D. If the direct materials price variance was unfavorable, what would be the standard price?
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
When is the material quantity variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the material price variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the material price variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
What are the two variances between the actual cost and the standard cost for direct materials?
Identify several causes of a favorable material quantity variance.
Identify several causes of an unfavorable material price variance.
When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price